What Criteria Should I Use When Evaluating a Franchise Opportunity?
Before purchasing a franchise, we recommend carefully considering the items in the eight categories below that will be critical to your success:
- How much money will this franchise cost before it becomes profitable?
- Can I afford to buy this franchise?
- Can I make enough money to make the investment worth my time and energy?
- Is there enough demand in your area for the franchisor's products or services?
- Is the demand year-long or seasonal?
- Will the demand grow in the future?
- Does the product or service generate repeat business?
- How well known is the franchise name?
- Does it have a reputation for quality?
- Have any consumers filed complaints with the local Better Business Bureau?
• Has the franchisor been in business long enough to have established the type of business strength you are seeking?
- Do you have the technical skills or experience to manage the franchise?
- Do you have the business skills to manage the franchise?
- How much competition do you have, including other franchisees?
- Are the competing companies/franchises well established?
- Do they offer the same products and services at the same or lower prices?
Is there a specialty or niche you can capture?
TRAINING AND SUPPORT
- What kind and how much training and support does the franchisor provide?
- Do existing franchisees find this level of training and support adequate?
• Is the franchisor planning to grow at a rate that is sustainable?